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As the global shift toward renewable energy accelerates, the supporting infrastructure鈥攅specially power transmission and distribution systems鈥攎ust rapidly evolve to meet new challenges. Borealis and Borouge, leading providers of advanced polyolefin solutions, are addressing this need with a significant expansion of their production capacities for cross-linked polyethylene (XLPE) and semiconductive (semicon) compounds. These materials are essential for manufacturing high-performance power cables that form the backbone of modern electricity grids.

By the end of 2027, the two companies will have doubled their global capacity to supply these critical materials. This expansion will allow them to meet the most demanding cable applications, including subsea cables rated at 220 kilovolts (kV), extra-high voltage alternating current (EHVAC), and high-voltage direct current (HVDC) systems. Within five years, Borealis and Borouge plan to grow their XLPE and semicon production at a rate twice that of the forecasted global demand for power cables鈥攑ositioning them as key enablers of the energy transition.

This ambitious growth initiative aligns with their long-term strategic platform, 鈥淏uilding for the Future,鈥� which supports the global push toward a more sustainable energy system. According to international energy forecasts, renewable sources such as solar and wind will comprise more than half of the world鈥檚 electrical generation capacity by 2040. Offshore wind, in particular, is expected to play a major role in this transformation, requiring robust, high-performance cable systems capable of transmitting power over long distances and under extreme conditions.

To meet this need, Borealis and Borouge are making strategic investments across two key regions. In Europe, a major milestone has been reached with the completion of an upgrade to Borealis鈥� semicon compounding assets in Antwerp, Belgium. This upgrade also supports the company鈥檚 XLPE operations in Stenungsund, Sweden. Alongside increased capacity, Borealis is implementing enhanced quality assurance processes designed to reduce operational risks and improve performance for customers executing complex energy infrastructure projects.

Meanwhile, in the Middle East, Borouge鈥攁 joint venture between Borealis and the Abu Dhabi National Oil Company (ADNOC)鈥攊s advancing a large-scale expansion of its XLPE production capabilities. The XLPE 2 unit at the Borouge 4 facility in Ruwais, Abu Dhabi, is on track to add 100,000 metric tons of annual capacity by the end of 2025. This expansion leverages Borealis鈥� proprietary technology and is designed to serve the rapidly growing markets of Asia and the Middle East.

鈥淭hese capacity expansions are a concrete demonstration of our strategy in action,鈥� said Craig Arnold, executive vice president of polyolefins, circular economy solutions, and base chemicals at Borealis. 鈥淭hey enhance our ability to deliver advanced materials鈥攁t scale and in the right locations鈥攕o we can stay ahead of our customers鈥� evolving needs.鈥�

Together, these projects build on more than 鈧�1 billion invested in wire and cable assets over the past two decades. Borealis and Borouge remain committed to supporting the global shift to renewables by providing the materials that enable a more reliable, efficient, and sustainable energy future.